On completing this chapter, you should know about
- Some additional cost accounting terminology
- Health care's stage 2 cost accounting challenge
- The concepts of activity-based costing and overhead cost drivers
- The distinctions among facility-sustaining, product-sustaining, batch-related, and unit-level activities in an activity-based costing system
- How to use multiple overhead rates to attach manufacturing overhead to products during stage 2
In chapter 2 we looked at some of the basic decisions that are made in a full-cost accounting system: defining a cost object, determining cost centers, distinguishing between direct and indirect costs, selecting allocation bases for support center ...